Fiduciary Risk Assessment for Bangladesh

Preparing the Fiduciary Risk Assessment (FRA), building on previous national level FRA’s conducted in June 2007 and March 2006, and the Public Expenditure and Accountability (PEFA) assessment from November 2006.

• Become thoroughly conversant with DFID guidance on managing fiduciary risk;

• Become thoroughly conversant with the findings and conclusions of existing diagnostic materials, including the World Bank’s latest (draft) Public Expenditure and Institutional Review (PEIR);

• Understand the PFMA system in Bangladesh and identify and evaluate its strengths and weaknesses;

• Assess the overall level of fiduciary risk, including the risk of corruption and the credibility of existing reform programmes;

• Record analysis of the PFMA system and of fiduciary risk within the prescribed DFID FRA format;

• Suggest possible short-term safeguards where risks are not adequately addressed in existing reform programmes and set out pros and cons of using them;

• Outline the options for monitoring future performance.